The furniture and home furnishings sector has battled a downturn over the last two years that has resulted in sales declining by 0.82% in 2025 compared to 2024 adjusted, according to the CNBC/National Retail Federation Retail Monitor.

Furniture and home furnishings sales continued to decline by 0.31% in January 2026, month over month seasonally, the report said. February results have not been released yet.

The industry struggled in 2025, as product and labor costs rose along with inflation, and sales declined as a result of a housing slump, which led to several furniture store closings.

In some cases, a furniture store will surprise its customers and close down operations for reasons other than economics, such as a retirement, or the owners need to vacate a building they occupy. That was the case for Kelsey Furniture Company.

Kelsey Furniture will close its Tuscola, Ill., store as it has been forced to vacate after the building was sold.

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Kelsey Furniture closes after building sold

67-year-old Kelsey Furniture Company announced on its website and social media that it must close its iconic Tuscola, Ill., location, since its store building has been sold.

The company, which opened for business in 1959, will liquidate all merchandise and assets in a going-out-of-business sale that began March 5.

Surrounding communities will miss their reliable furniture store that has been a part of their lives for over 60 years.

The company posted a message with bold lettering on its website: Furniture-Mattress Sets-Accessories. Going out of business. Public Notice.

“Notice has been given, after 67 years, we are closing our doors forever,” the furniture store said in a message on its website. “The building has sold! The premises must be broom-swept clean.”

Iconic furniture store liquidates

“In order to accomplish this, we must empty the building. This is it! Nothing held back! All must go, wall-to-wall sell-off,” the message continued.

The company said that it was selling off all its inventory to the public and dealers. It will also sell all office equipment and vehicles.

The total liquidation signals that the furniture retailer will not likely reopen for business in another location.

“After 67 years, goodbye. Thank you to all our loyal customers for the past 67 years. We will miss all of you!” the message said.

The message concluded with: Ordered Sold.

Kasala closes 3 stores as owners retire

Another furniture company recently closed for reasons other than economic hardship, as furniture store chain Kasala Modern Home Furnishings said it would close down its three stores in the Pacific Northwest, as the owners plan to retire from the industry and focus on other business and personal interests, according to its website.

The Seattle-based furniture chain rolled out “The Great $5 Million Store Closing Sale” with a private sale that began Feb. 4 and expanded to the general public on Feb. 6, seeking “to sell our entire and complete stock to the bare walls as quickly as possible,” according to a message on its website.

Tuskers owners also retire, close down

The owners of another popular furniture chain also decided it was time to retire, as Florida-based furniture chain Tuskers closed its locations after almost 20 years in business, Furniture Today reported.

Miramar Beach, Fla.-based Tuskers Home Store and Tuskers Furniture & Patio began final liquidation sales on Dec. 26 that were managed by Planned Furniture Promotions, which specializes in retail home furnishings promotions. In addition to all inventory, Tuskers Home Store showroom was also marketed for sale.

Related: 31-year-old furniture giant closes down after failed turnaround